April 22, 2024
The Federal Government has announced its qualification for a loan from the World Bank, totaling 2.25 billion dollars.
The minister of Finance and Coordinating Minister of the Economy, Mr WALE EDUNunveiled this milestone during a joint press conference held by the Ministry of Finance and the Central Bank of Nigeria (CBN) at the spring meetings of the International Monetary Fund (IMF) and the World Bank in Washington D.C.
He said the package, approved by the Board of Directors of the World Bank, offers a 40-year term with a 10-year moratorium and a nominal 1 percent interest rate.
He added that Nigeria is set to benefit from budgetary support and low-interest funding from the African Development Bank, noting that negotiations with foreign direct investors are also underway.
April 22, 2024
A call has been made by the Petroleum Products Retail Outlets Owners Association of Nigeria – PETROAN Akwa Ibom state chapter on the general public to disregard any information that Petrol Fueling Stations in the state will be shut down from today, Monday, 22nd of April 2024.
PETROAN disclosed this in a statement signed by its Chairman, Hon. UDEME ESSET, calling on all Retail Outlets Owners to go about their Business.
This comes on the heels of the Independent Petroleum Marketers of Nigeria, IPMAN, Akwa Ibom state chapter directing all Petrol Fueling Stations to remain closed from today to enable Marketers embark on a peaceful protest following the hijacking and detention of trucks and tanker drivers bringing products to State.
The IPMAN chairman, Comrade FRANCIS UDOYEN had in an exclusive with Inspiration FM over the telephone, spoke more on the move, noting that it means no harm to the people of Akwa Ibom.
However, condemning the planned strike by IPMAN, PETROAN said enforcement team will be released from today to monitor the operations of the retails Outlets and report to the Nigeria Midstream and Downstream petroleum Regulatory Authority – NMDPRA as well as security agencies should any unauthorized persons or group decide to cause trouble.
It expressed optimism that the state government will take necessary actions against those stopping petrol Tankers on the road, thereby causing unnecessary traffic and endangering residents in a possible accident or explosion of the inflammable tankers impounded.
March 25, 2024
The Federal Government has initiated legal proceedings against the cryptocurrency exchange giant; Binance, over tax evasion.
The charges were filed at the Federal High Court in Abuja by the Federal Inland Revenue Service.
In the suit with number: FHC/ABJ/CR/115/2024, FIRS implicated Binance with four tax evasion accusations adding that it was a decisive move aimed at upholding fiscal responsibility and safeguarding the economic integrity of the country.
Joined with the crypto company as second and third defendants in the suit are Tigran Gambaryan and Nadeem Anjarwalla, both senior executives of Binance currently under the custody of the Economic and Financial Crimes Commission.
The charges levied against Binance include non-payment of Value-Added Tax, Company Income Tax, failure to file tax returns, and complicity in aiding customers to evade taxes through its platform.
In the suit, the Federal Government also accused Binance of failure to register with FIRS for tax purposes and contravening existing tax regulations within the country.
One of the counts in the lawsuit pertains to Binance’s alleged failure to collect and remit various categories of taxes to the federation as stipulated by Section 40 of the FIRS Establishment Act 2007 as amended.
Section 40 of the Act explicitly addresses the non-deduction and non-remittance of taxes, prescribing penalties and potential imprisonment for defaulting entities.
The charges further detail specific instances where Binance purportedly violated tax laws, such as failing to issue invoices for VAT purposes, thus obstructing the determination and payment of taxes by subscribers.
“Any company that transacts business in excess of N25 million annually is deemed by the Finance Act to be present in Nigeria.
“According to this rule, Binance falls into that category. So, it has to pay taxes like Company Income Tax (CIT) and also collect and pay Value Added Tax (VAT).
“But Binance did not do this properly. So, the company broke Nigerian laws and could be investigated and taken to court for this infraction,” Adekanmbi said.
FIRS, by the law setting it up and various others, is empowered to assess, collect and account for revenue accruing to the Federation and administer relevant tax laws.
Binance pleaded guilty to flouting anti-money laundering laws in the United States in late 2023, settling for a plea bargain that cost the company $ 4.3 billion.
March 9, 2024
Look around you . . . see anything? Look again. . . still find nothing?
Sorry, check your pockets . . . uhh, your bank accounts . . . the naira left you too, and the ones in your pockets are worth less than what they seem.
Economic landscapes undergo fluctuations, and you must be equipped with effective personal finance strategies to navigate the challenges of a dwindling Naira. Whether facing inflation, currency devaluation, or economic uncertainties, I have identified key strategies to fortify your finances and safeguard your financial well-being.
This article is inspired by recent economic experiences in Nigeria, where the naira seems to be on a free fall, against the United States dollar. So before we dive into the ‘hows’, let’s establish the ‘whys’ of economic uncertainty and personal finance.
Nigeria is a peculiar and interesting country. The air here feels different, and so does every other thing in this terrain. Oil Price Volatility, External Debt and Borrowing, Foreign Exchange Rate Fluctuations, Security Challenges, Policy Uncertainty, Infrastructure Deficiency, Corruption and Governance Issues, Unemployment and Social Unrest, Dependency on Imports, Inflationary Pressures, and maybe Demographic Challenges are some of the few conditions that exacerbate the economic crisis in Nigeria.
Enough said about the ‘whys’, but take another look at that list, some of these conditions can be avoided, but we are Nigerians and we have to survive.
So, how do you live above these challenges? Walk with me.
- Create a Resilient Budget:
In times of economic uncertainty, a well-crafted budget becomes your financial compass. Evaluate your income and expenditures, cutting unnecessary expenses, and prioritizing essential needs. A lean budget ensures that your financial resources are allocated efficiently, providing a buffer against the impact of a dwindling dollar.
- Emergency Fund Prioritization:
The importance of an emergency fund is magnified in a dwindling Naira economy. Aim to set aside three to six months’ worth of living expenses in a dedicated emergency fund, preferably in a dollar or any other strong foreign currency. This financial cushion serves as a safety net, offering peace of mind and financial security during unexpected events or economic downturns.
- Diversify Income Streams:
This can never be overemphasized. Relying solely on a single income source can expose you to heightened financial risk. Explore opportunities to diversify your income, whether through part-time work, freelance gigs, or passive income streams. Diversification enhances your financial resilience and mitigates the impact of economic fluctuations.
- Debt Management and Reduction:
High-interest debt can be a significant financial burden, especially during economic downturns. Prioritise debt repayment, focusing on high-interest obligations. Consider debt consolidation or refinancing options to alleviate financial strain and free up resources for savings and investments.
- Invest Wisely:
In a dwindling Naira economy, strategic investment decisions are crucial. Diversify your investment portfolio across various asset classes, including stocks, bonds, and precious metals. Explore all opportunities to invest in sectors that traditionally perform well during economic uncertainties.
- Explore Inflation-Resistant Assets:
As the purchasing power of the dollar weakens, consider allocating a portion of your investments to assets that historically resist the impact of inflation. Real assets like real estate or commodities such as gold can act as a hedge against the depreciating value of currency.
- Continuous Financial Education:
Stay informed about economic trends, fiscal policies, and global financial developments. Continuous financial education empowers you to make informed decisions, adapt to changing economic conditions, and position yourself strategically for long-term financial success.
- Negotiate Living Expenses:
In a dwindling Naira economy, proactive negotiation of living expenses can yield significant savings. Engage with service providers to explore cost-saving measures, loyalty discounts, or alternative plans that align with your budget constraints.
- Savings in Precious Metals:
Traditional stores of value, such as precious metals (gold and silver), often gain prominence during economic uncertainties. Consider diversifying a portion of your savings into precious metals to preserve wealth and mitigate the impact of currency depreciation.
- Adopt a Conservative Approach:
Exercise prudence in financial decisions and adopt a conservative approach to risk. Avoid overleveraging, and prioritise capital preservation. A conservative financial stance enhances your ability to weather economic downturns and emerge financially resilient.
In conclusion, a proactive and diverse strategy is needed for effective personal money management in a bearish-naira bullish-dollar world. Notwithstanding the difficulties brought on by economic uncertainty, you can strengthen your financial base, reduce risks, and put yourself in a position for long-term financial success by putting these measures into practice.
Written by Okodi Okodi
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